• DXY corrects lower and drops to multi-session lows.
• The dollar could have charted a near-term top near 110.80.

DXY trades on the defensive for the second session in a row and extends the recent breakdown of the 110.00 mark.

The short-term bullish view in the dollar, however, remains well in place for the time being and so far bolstered by the 7-month support line just below 106.00.

Further retracement in the short-term horizon could leave the recent 20-year high near 110.80 (September 7) as an interim peak. The surpass of this area could open the door to the weekly highs at 111.90 (June 6 2002) and 113.35 (May 24 2002).

Looking at the long-term scenario, the bullish view in the dollar remains in place while above the 200-day SMA at 101.26.

DXY daily chart